Question 1

What happens when my ARM adjusts in year 6?

Accepted Answer

Your rate resets based on a market index plus a margin. Annual and lifetime caps limit how far it can move.

Question 2

Are ARMs harder to qualify for than fixed loans?

Accepted Answer

No. Qualification standards are similar. Some lenders qualify you at the fully-indexed rate, not the start rate.

Question 3

Can I refinance before my ARM adjusts?

Accepted Answer

Yes. Many borrowers refinance before the fixed period ends. There's no penalty on most ARM products.

Question 4

Do ARM rates ever go down after adjusting?

Accepted Answer

Yes. If the benchmark index drops, your rate can decrease. Adjustments move in both directions.

Question 5

Is an ARM a good fit for a rural Alturas property?

Accepted Answer

It depends on your timeline. If you're holding under ten years, the lower initial rate likely saves you money.

ARM Loans in Alturas, CA — Lower Rates, Smarter Terms